Consider an option on a non-dividend paying stock when the stock price is $67, the exercise price is $61, the risk-free rate is 0.5%, the market volatility is 30% and the time to maturity is 6 months. Using the Black-Scholes Model when necessary (i) Compute the price of the option if it is a European Call. (ii) Compute the price of the option if it is an American Call. (iii) Compute the price of the option if it is a European Put. (iv) Assuming two dividend payments $1.75 and $2.75, two months and five months from now, compute the price of the option if it is a European Call. (v) Refer to the dividend information provided in (iv) above. Compute the price of the option if it is an American Call. Provide a graphical illustration to demonstrate how the price of this American Call and the payoff from the same change with respect to changes in the stock price. (vi) PUT ALL IN EXCEL ATTACHMENT SHOWING FORMULAS
In: Finance
Prepare journal entries to record the following merchandising
transactions of Cabela’s, which uses the perpetual inventory system
and the gross method. Hint: It will help to identify each
receivable and payable; for example, record the purchase on July 1
in Accounts Payable—Boden.
| July | 1 | Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. | ||
| 2 | Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. | |||
| 3 | Paid $135 cash for freight charges on the purchase of July 1. | |||
| 8 | Sold merchandise that had cost $1,800 for $2,200 cash. | |||
| 9 | Purchased merchandise from Leight Co. for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. | |||
| 11 | Returned $1,000 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. | |||
| 12 | Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. | |||
| 16 | Paid the balance due to Boden Company within the discount period. | |||
| 19 | Sold merchandise that cost $1,200 to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. | |||
| 21 | Gave a price reduction (allowance) of $300 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. | |||
| 24 | Paid Leight Co. the balance due, net of discount. | |||
| 30 | Received the balance due from Art Co. for the invoice dated July 19, net of discount. | |||
| 31 | Sold merchandise that cost $5,300 to Creek Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. |
1
Purchased merchandise from Boden Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.
2
Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2.
3
Record the cost of merchandise sold, $542
4
Paid $135 cash for freight charges on the purchase of July 1.
5
Record sale of merchandise for $2,200 cash.
6
Record cost of merchandise sold, $1,800.
7
Purchased merchandise from Leight Co. for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
8
Returned $1,000 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount.
9
Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
10
Paid the balance due to Boden Company within the discount period.
11
Sold merchandise to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.
12
Record cost of merchandise sold, $1,200.
13
Gave a price reduction (allowance) of $300 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount.
14
Paid Leight Co. the balance due, net of discount.
15
Received the balance due from Art Co. for the invoice dated July 19, net of discount.
16
Sold merchandise to Creek Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
17
Record cost of merchandise sold, $5,300.
In: Accounting
Purchase-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Niles Co. during March of the current year:
| Mar. 1. | Purchased merchandise from Haas Co., $18,800, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $525 was added to the invoice. |
| 5. | Purchased merchandise from Whitman Co., $15,350, terms FOB destination, n/30. |
| 10. | Paid Haas Co. for invoice of March 1. |
| 13. | Purchased merchandise from Jost Co., $4,900, terms FOB destination, 1/10, n/30. |
| 14. | Issued debit memo to Jost Co. for $900 of merchandise returned from purchase on March 13. |
| 18. | Purchased merchandise from Fairhurst Company, $12,750, terms FOB shipping point, n/eom. |
| 18. | Paid freight of $260 on March 18 purchase from Fairhurst Company. |
| 19. | Purchased merchandise from Bickle Co., $11,350, terms FOB destination, 2/10, n/30. |
| 23. | Paid Jost Co. for invoice of March 13, less debit memo of March 14. |
| 29. | Paid Bickle Co. for invoice of March 19. |
| 31. | Paid Fairhurst Company for invoice of March 18. |
| 31. | Paid Whitman Co. for invoice of March 5. |
Required: Journalize the entries to record the transactions of Britt Co. for March.Sales-Related Transactions Using Perpetual Inventory System
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $14,300, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,600. |
| 2. | Sold merchandise for $20,500 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $13,300. |
| 5. | Sold merchandise on account to Peacock Company, $35,100, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $22,800. |
| 8. | Sold merchandise for $12,400 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,400. |
| 13. | Sold merchandise to customers who used MasterCard cards, $5,500. The cost of merchandise sold was $3,500. |
| 14. | Sold merchandise on account to Loeb Co., $11,700, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,900. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $1,800 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,000. |
| 18. | Sold merchandise on account to Jennings Company, $6,300, terms FOB shipping point, 2/10, n/30. Paid $230 for freight and added it to the invoice. The cost of merchandise sold was $3,800. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $1,900 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $1,100 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $2,410 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
In: Accounting
DO IT! 5.2 (LO 2) On October 5, Wang Company buys merchandise on account from Davis Company. The selling price of the goods is $4,800, and the cost to Davis Company is $3,100. On October 8, Wang returns defective goods with a selling price of $650 and a fair value of $100. Record the transactions on the books of Wang Company.
a. Record transactions of purchasing company.
b. Record transactions of selling company.
In: Accounting
[The following information applies to the questions
displayed below.]
|
Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 25,800 units of product to finished goods inventory. Its 3,600 units of beginning goods in process consisted of $19,700 of direct materials, $153,300 of direct labor, and $100,540 of factory overhead. It has 3,000 units (100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows. |
| Goods in Process Inventory | Acct. No.133 | |||
| Date | Explanation | Debit | Credit | Balance |
| Oct. 1 | Balance | 273,540 | ||
| 31 | Direct materials | 510,400 | 783,940 | |
| 31 | Direct labor | 1,261,300 | 2,045,240 | |
| 31 | Applied overhead | 978,240 | 3,023,480 | |
21.
Required information
| 1. |
Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.) |
| OGDEN CO. | ||
| Process Cost Summary | ||
| For Month Ended October 31 | ||
| Costs Charged to Production | ||
| Costs of beginning goods in process | ||
| (Click to select)Indirect laborDirect materialsDirect laborIndirect materialsFactory overhead | $ | |
| (Click to select)Indirect laborFactory overheadIndirect materialsDirect laborDirect materials | ||
| (Click to select)Direct materialsIndirect laborDirect laborFactory overheadIndirect materials | ||
| $ | ||
| Costs incurred this period | ||
| (Click to select)Factory overheadIndirect materialsIndirect laborDirect laborDirect materials | $ | |
| (Click to select)Direct materialsDirect laborIndirect materialsFactory overheadIndirect labor | ||
| (Click to select)Direct materialsDirect laborFactory overheadIndirect laborIndirect materials | ||
| Total costs to account for | $ | |
| Unit cost information | |||
| Units to account for | Units accounted for | ||
| (Click to select)Units started this periodDirect laborCompleted & transferred outBeginning goods in processEnding goods in process | (Click to select)Direct laborBeginning goods in processCompleted & transferred outEnding goods in processUnits started this period | ||
| (Click to select)Beginning goods in processUnits started this periodEnding goods in processCompleted & transferred outDirect labor | (Click to select)Beginning goods in processEnding goods in processCompleted & transferred outDirect laborUnits started this period | ||
| Total units to account for | Total units accounted for | ||
| Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Units completed & transferred outEnding goods in processDirect LaborBeginning goods in processIndirect labor | EUP | EUP | EUP |
| (Click to select)Beginning goods in processUnits of beginning goods in processDirect materialsDirect laborUnits of ending goods in process | EUP | EUP | EUP |
| Equivalent units of production | EUP | EUP | EUP |
| Cost per EUP | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Cost of ending goods in processUnits of ending goods in processUnits of beginning goods in processCost of beginning goods in processFactory overhead | $ | $ | $ |
| (Click to select)Indirect materialsUnits of ending goods in processCosts incurred this periodDirect materialsUnits of beginning goods in process | |||
| Total costs | $ | $ | $ |
| (Click to select)Direct laborUnits of beginning goods in processEquivalent units of productionUnits of ending goods in processUnits started this period | EUP | EUP | EUP |
| Cost per EUP | $ per EUP | $ per EUP | $ per EUP |
| Cost assignment and reconciliation | ||
| Costs transferred out | ||
| (Click to select)Direct materialsIndirect laborIndirect materialsFactory overheadDirect labor | $ | |
| (Click to select)Indirect materialsDirect laborFactory overheadIndirect laborDirect materials | ||
| (Click to select)Direct laborDirect materialsFactory overheadIndirect materialsIndirect labor | ||
| $ | ||
| Costs of ending goods in process | ||
| (Click to select)Indirect laborFactory overheadIndirect materialsDirect materialsDirect labor | $ | |
| (Click to select)Direct materialsIndirect materialsIndirect laborDirect laborFactory overhead | ||
| (Click to select)Indirect laborDirect materialsDirect laborFactory overheadIndirect materials | ||
| Total costs to account for | $ | |
In: Accounting
|
Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 23,400 units of product to finished goods inventory. Its 3,800 units of beginning goods in process consisted of $21,300 of direct materials, $143,300 of direct labor, and $99,340 of factory overhead. It has 2,200 units (100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows. |
| Goods in Process Inventory | Acct. No.133 | |||
| Date | Explanation | Debit | Credit | Balance |
| Oct. 1 | Balance | 263,940 | ||
| 31 | Direct materials | 511,600 | 775,540 | |
| 31 | Direct labor | 1,240,300 | 2,015,840 | |
| 31 | Applied overhead | 982,240 | 2,998,080 | |
21.
Required information
| 1. |
Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.) |
| OGDEN CO. | ||
| Process Cost Summary | ||
| For Month Ended October 31 | ||
| Costs Charged to Production | ||
| Costs of beginning goods in process | ||
| (Click to select)Factory overheadIndirect materialsIndirect laborDirect materialsDirect labor | $ | |
| (Click to select)Direct materialsIndirect materialsDirect laborIndirect laborFactory overhead | ||
| (Click to select)Direct laborIndirect laborIndirect materialsFactory overheadDirect materials | ||
| $ | ||
| Costs incurred this period | ||
| (Click to select)Indirect materialsDirect materialsFactory overheadIndirect laborDirect labor | $ | |
| (Click to select)Factory overheadDirect laborDirect materialsIndirect laborIndirect materials | ||
| (Click to select)Direct materialsIndirect laborDirect laborIndirect materialsFactory overhead | ||
| Total costs to account for | $ | |
| Unit cost information | |||
| Units to account for | Units accounted for | ||
| (Click to select)Completed & transferred outEnding goods in processDirect laborBeginning goods in processUnits started this period | (Click to select)Units started this periodEnding goods in processCompleted & transferred outDirect laborBeginning goods in process | ||
| (Click to select)Direct laborBeginning goods in processUnits started this periodEnding goods in processCompleted & transferred out | (Click to select)Completed & transferred outBeginning goods in processDirect laborEnding goods in processUnits started this period | ||
| Total units to account for | Total units accounted for | ||
| Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Beginning goods in processEnding goods in processDirect LaborUnits completed & transferred outIndirect labor | EUP | EUP | EUP |
| (Click to select)Direct laborDirect materialsUnits of ending goods in processBeginning goods in processUnits of beginning goods in process | EUP | EUP | EUP |
| Equivalent units of production | EUP | EUP | EUP |
| Cost per EUP | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Cost of ending goods in processUnits of ending goods in processUnits of beginning goods in processFactory overheadCost of beginning goods in process | $ | $ | $ |
| (Click to select)Units of ending goods in processIndirect materialsDirect materialsCosts incurred this periodUnits of beginning goods in process | |||
| Total costs | $ | $ | $ |
| (Click to select)Equivalent units of productionUnits of beginning goods in processDirect laborUnits started this periodUnits of ending goods in process | EUP | EUP | EUP |
| Cost per EUP | $ per EUP | $ per EUP | $ per EUP |
| Cost assignment and reconciliation | ||
| Costs transferred out | ||
| (Click to select)Direct materialsFactory overheadDirect laborIndirect laborIndirect materials | $ | |
| (Click to select)Direct laborIndirect materialsFactory overheadIndirect laborDirect materials | ||
| (Click to select)Direct materialsIndirect laborIndirect materialsDirect laborFactory overhead | ||
| $ | ||
| Costs of ending goods in process | ||
| (Click to select)Indirect materialsDirect laborFactory overheadDirect materialsIndirect labor | $ | |
| (Click to select)Indirect laborFactory overheadDirect materialsDirect laborIndirect materials | ||
| (Click to select)Factory overheadIndirect materialsDirect materialsIndirect laborDirect labor | ||
| Total costs to account for | $ | |
In: Accounting
[The following information applies to the questions
displayed below.]
|
Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 22,400 units of product to finished goods inventory. Its 4,200 units of beginning goods in process consisted of $19,500 of direct materials, $151,300 of direct labor, and $102,140 of factory overhead. It has 3,000 units (100% complete with respect to direct materials and 60% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows. |
| Goods in Process Inventory | Acct. No.133 | |||
| Date | Explanation | Debit | Credit | Balance |
| Oct. 1 | Balance | 272,940 | ||
| 31 | Direct materials | 505,500 | 778,440 | |
| 31 | Direct labor | 1,297,300 | 2,075,740 | |
| 31 | Applied overhead | 988,440 | 3,064,180 | |
28.
Required information
| 1. |
Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.) |
| OGDEN CO. | ||
| Process Cost Summary | ||
| For Month Ended October 31 | ||
| Costs Charged to Production | ||
| Costs of beginning goods in process | ||
| (Click to select)Direct materialsIndirect materialsIndirect laborFactory overheadDirect labor | $ | |
| (Click to select)Indirect laborFactory overheadDirect laborDirect materialsIndirect materials | ||
| (Click to select)Direct laborFactory overheadIndirect laborDirect materialsIndirect materials | ||
| $ | ||
| Costs incurred this period | ||
| (Click to select)Indirect laborDirect materialsIndirect materialsDirect laborFactory overhead | $ | |
| (Click to select)Indirect materialsDirect materialsDirect laborIndirect laborFactory overhead | ||
| (Click to select)Direct laborIndirect laborDirect materialsIndirect materialsFactory overhead | ||
| Total costs to account for | $ | |
| Unit cost information | |||
| Units to account for | Units accounted for | ||
| (Click to select)Units started this periodDirect laborEnding goods in processCompleted & transferred outBeginning goods in process | (Click to select)Completed & transferred outBeginning goods in processUnits started this periodEnding goods in processDirect labor | ||
| (Click to select)Direct laborBeginning goods in processUnits started this periodEnding goods in processCompleted & transferred out | (Click to select)Completed & transferred outDirect laborEnding goods in processBeginning goods in processUnits started this period | ||
| Total units to account for | Total units accounted for | ||
| Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Units completed & transferred outEnding goods in processIndirect laborBeginning goods in processDirect Labor | EUP | EUP | EUP |
| (Click to select)Units of ending goods in processDirect materialsUnits of beginning goods in processBeginning goods in processDirect labor | EUP | EUP | EUP |
| Equivalent units of production | EUP | EUP | EUP |
| Cost per EUP | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Units of ending goods in processFactory overheadCost of beginning goods in processCost of ending goods in processUnits of beginning goods in process | $ | $ | $ |
| (Click to select)Units of ending goods in processDirect materialsIndirect materialsUnits of beginning goods in processCosts incurred this period | |||
| Total costs | $ | $ | $ |
| (Click to select)Units started this periodEquivalent units of productionDirect laborUnits of beginning goods in processUnits of ending goods in process | EUP | EUP | EUP |
| Cost per EUP | $ per EUP | $ per EUP | $ per EUP |
| Cost assignment and reconciliation | ||
| Costs transferred out | ||
| (Click to select)Indirect laborFactory overheadDirect laborDirect materialsIndirect materials | $ | |
| (Click to select)Direct materialsFactory overheadIndirect laborIndirect materialsDirect labor | ||
| (Click to select)Indirect materialsDirect materialsIndirect laborDirect laborFactory overhead | ||
| $ | ||
| Costs of ending goods in process | ||
| (Click to select)Direct materialsIndirect materialsIndirect laborFactory overheadDirect labor | $ | |
| (Click to select)Direct laborIndirect materialsIndirect laborFactory overheadDirect materials | ||
| (Click to select)Direct materialsFactory overheadIndirect laborIndirect materialsDirect labor | ||
| Total costs to account for | $ | |
In: Accounting
|
Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 22,400 units of product to finished goods inventory. Its 4,200 units of beginning goods in process consisted of $19,500 of direct materials, $151,300 of direct labor, and $102,140 of factory overhead. It has 3,000 units (100% complete with respect to direct materials and 60% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows. |
| Goods in Process Inventory | Acct. No.133 | |||
| Date | Explanation | Debit | Credit | Balance |
| Oct. 1 | Balance | 272,940 | ||
| 31 | Direct materials | 505,500 | 778,440 | |
| 31 | Direct labor | 1,297,300 | 2,075,740 | |
| 31 | Applied overhead | 988,440 | 3,064,180 | |
28.
Required information
| 1. |
Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.) |
| OGDEN CO. | ||
| Process Cost Summary | ||
| For Month Ended October 31 | ||
| Costs Charged to Production | ||
| Costs of beginning goods in process | ||
| (Click to select)Direct laborIndirect materialsDirect materialsFactory overheadIndirect labor | $ | |
| (Click to select)Indirect laborFactory overheadDirect laborIndirect materialsDirect materials | ||
| (Click to select)Direct materialsFactory overheadIndirect materialsDirect laborIndirect labor | ||
| $ | ||
| Costs incurred this period | ||
| (Click to select)Indirect laborDirect laborFactory overheadIndirect materialsDirect materials | $ | |
| (Click to select)Direct materialsDirect laborIndirect materialsFactory overheadIndirect labor | ||
| (Click to select)Direct laborFactory overheadIndirect materialsIndirect laborDirect materials | ||
| Total costs to account for | $ | |
| Unit cost information | |||
| Units to account for | Units accounted for | ||
| (Click to select)Ending goods in processUnits started this periodDirect laborBeginning goods in processCompleted & transferred out | (Click to select)Ending goods in processCompleted & transferred outUnits started this periodDirect laborBeginning goods in process | ||
| (Click to select)Beginning goods in processCompleted & transferred outEnding goods in processUnits started this periodDirect labor | (Click to select)Units started this periodBeginning goods in processCompleted & transferred outDirect laborEnding goods in process | ||
| Total units to account for | Total units accounted for | ||
| Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Units completed & transferred outDirect LaborBeginning goods in processEnding goods in processIndirect labor | EUP | EUP | EUP |
| (Click to select)Direct laborUnits of ending goods in processBeginning goods in processDirect materialsUnits of beginning goods in process | EUP | EUP | EUP |
| Equivalent units of production | EUP | EUP | EUP |
| Cost per EUP | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Cost of ending goods in processUnits of ending goods in processFactory overheadCost of beginning goods in processUnits of beginning goods in process | $ | $ | $ |
| (Click to select)Units of beginning goods in processUnits of ending goods in processDirect materialsCosts incurred this periodIndirect materials | |||
| Total costs | $ | $ | $ |
| (Click to select)Direct laborUnits of beginning goods in processUnits started this periodEquivalent units of productionUnits of ending goods in process | EUP | EUP | EUP |
| Cost per EUP | $ per EUP | $ per EUP | $ per EUP |
| Cost assignment and reconciliation | ||
| Costs transferred out | ||
| (Click to select)Indirect laborDirect materialsIndirect materialsFactory overheadDirect labor | $ | |
| (Click to select)Factory overheadIndirect materialsIndirect laborDirect materialsDirect labor | ||
| (Click to select)Direct materialsDirect laborIndirect laborIndirect materialsFactory overhead | ||
| $ | ||
| Costs of ending goods in process | ||
| (Click to select)Indirect laborFactory overheadIndirect materialsDirect laborDirect materials | $ | |
| (Click to select)Direct laborIndirect materialsFactory overheadDirect materialsIndirect labor | ||
| (Click to select)Direct materialsIndirect materialsDirect laborFactory overheadIndirect labor | ||
| Total costs to account for | $ | |
In: Accounting
|
Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 23,400 units of product to finished goods inventory. Its 3,800 units of beginning goods in process consisted of $21,300 of direct materials, $143,300 of direct labor, and $99,340 of factory overhead. It has 2,200 units (100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows. |
| Goods in Process Inventory | Acct. No.133 | |||
| Date | Explanation | Debit | Credit | Balance |
| Oct. 1 | Balance | 263,940 | ||
| 31 | Direct materials | 511,600 | 775,540 | |
| 31 | Direct labor | 1,240,300 | 2,015,840 | |
| 31 | Applied overhead | 982,240 | 2,998,080 | |
21.
Required information
| 1. |
Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.) |
| OGDEN CO. | ||
| Process Cost Summary | ||
| For Month Ended October 31 | ||
| Costs Charged to Production | ||
| Costs of beginning goods in process | ||
| (Click to select)Indirect laborIndirect materialsDirect materialsFactory overheadDirect labor | $ | |
| (Click to select)Factory overheadIndirect materialsDirect materialsIndirect laborDirect labor | ||
| (Click to select)Direct materialsDirect laborIndirect laborIndirect materialsFactory overhead | ||
| $ | ||
| Costs incurred this period | ||
| (Click to select)Direct laborIndirect laborDirect materialsFactory overheadIndirect materials | $ | |
| (Click to select)Direct laborIndirect materialsFactory overheadIndirect laborDirect materials | ||
| (Click to select)Direct laborIndirect laborDirect materialsFactory overheadIndirect materials | ||
| Total costs to account for | $ | |
| Unit cost information | |||
| Units to account for | Units accounted for | ||
| (Click to select)Units started this periodBeginning goods in processEnding goods in processCompleted & transferred outDirect labor | (Click to select)Units started this periodDirect laborEnding goods in processBeginning goods in processCompleted & transferred out | ||
| (Click to select)Beginning goods in processUnits started this periodEnding goods in processDirect laborCompleted & transferred out | (Click to select)Beginning goods in processUnits started this periodDirect laborCompleted & transferred outEnding goods in process | ||
| Total units to account for | Total units accounted for | ||
| Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Units completed & transferred outEnding goods in processBeginning goods in processDirect LaborIndirect labor | EUP | EUP | EUP |
| (Click to select)Direct laborUnits of ending goods in processUnits of beginning goods in processBeginning goods in processDirect materials | EUP | EUP | EUP |
| Equivalent units of production | EUP | EUP | EUP |
| Cost per EUP | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Cost of beginning goods in processCost of ending goods in processUnits of ending goods in processUnits of beginning goods in processFactory overhead | $ | $ | $ |
| (Click to select)Indirect materialsUnits of ending goods in processDirect materialsUnits of beginning goods in processCosts incurred this period | |||
| Total costs | $ | $ | $ |
| (Click to select)Units of beginning goods in processEquivalent units of productionDirect laborUnits started this periodUnits of ending goods in process | EUP | EUP | EUP |
| Cost per EUP | $ per EUP | $ per EUP | $ per EUP |
| Cost assignment and reconciliation | ||
| Costs transferred out | ||
| (Click to select)Indirect laborDirect laborIndirect materialsFactory overheadDirect materials | $ | |
| (Click to select)Indirect materialsDirect laborFactory overheadIndirect laborDirect materials | ||
| (Click to select)Factory overheadDirect laborIndirect materialsIndirect laborDirect materials | ||
| $ | ||
| Costs of ending goods in process | ||
| (Click to select)Direct materialsFactory overheadIndirect materialsDirect laborIndirect labor | $ | |
| (Click to select)Indirect materialsDirect materialsFactory overheadIndirect laborDirect labor | ||
| (Click to select)Direct materialsIndirect laborFactory overheadDirect laborIndirect materials | ||
| Total costs to account for | $ | |
In: Accounting
|
Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During October, the company completed and transferred 22,400 units of product to finished goods inventory. Its 4,200 units of beginning goods in process consisted of $19,500 of direct materials, $151,300 of direct labor, and $102,140 of factory overhead. It has 3,000 units (100% complete with respect to direct materials and 60% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for October, the company’s Goods in Process Inventory account follows. |
| Goods in Process Inventory | Acct. No.133 | |||
| Date | Explanation | Debit | Credit | Balance |
| Oct. 1 | Balance | 272,940 | ||
| 31 | Direct materials | 505,500 | 778,440 | |
| 31 | Direct labor | 1,297,300 | 2,075,740 | |
| 31 | Applied overhead | 988,440 | 3,064,180 | |
28.
Required information
| 1. |
Prepare the company’s process cost summary for October using the weighted-average method. (Due to rounding of cost per unit, the total costs accounted for in the cost summary may not equal to sum of all the costs given in the problem. Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the "$" sign in your response.) |
| OGDEN CO. | ||
| Process Cost Summary | ||
| For Month Ended October 31 | ||
| Costs Charged to Production | ||
| Costs of beginning goods in process | ||
| (Click to select)Direct laborIndirect materialsDirect materialsFactory overheadIndirect labor | $ | |
| (Click to select)Indirect laborFactory overheadDirect laborIndirect materialsDirect materials | ||
| (Click to select)Direct materialsFactory overheadIndirect materialsDirect laborIndirect labor | ||
| $ | ||
| Costs incurred this period | ||
| (Click to select)Indirect laborDirect laborFactory overheadIndirect materialsDirect materials | $ | |
| (Click to select)Direct materialsDirect laborIndirect materialsFactory overheadIndirect labor | ||
| (Click to select)Direct laborFactory overheadIndirect materialsIndirect laborDirect materials | ||
| Total costs to account for | $ | |
| Unit cost information | |||
| Units to account for | Units accounted for | ||
| (Click to select)Ending goods in processUnits started this periodDirect laborBeginning goods in processCompleted & transferred out | (Click to select)Ending goods in processCompleted & transferred outUnits started this periodDirect laborBeginning goods in process | ||
| (Click to select)Beginning goods in processCompleted & transferred outEnding goods in processUnits started this periodDirect labor | (Click to select)Units started this periodBeginning goods in processCompleted & transferred outDirect laborEnding goods in process | ||
| Total units to account for | Total units accounted for | ||
| Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Units completed & transferred outDirect LaborBeginning goods in processEnding goods in processIndirect labor | EUP | EUP | EUP |
| (Click to select)Direct laborUnits of ending goods in processBeginning goods in processDirect materialsUnits of beginning goods in process | EUP | EUP | EUP |
| Equivalent units of production | EUP | EUP | EUP |
| Cost per EUP | Direct Materials | Direct Labor | Factory Overhead |
| (Click to select)Cost of ending goods in processUnits of ending goods in processFactory overheadCost of beginning goods in processUnits of beginning goods in process | $ | $ | $ |
| (Click to select)Units of beginning goods in processUnits of ending goods in processDirect materialsCosts incurred this periodIndirect materials | |||
| Total costs | $ | $ | $ |
| (Click to select)Direct laborUnits of beginning goods in processUnits started this periodEquivalent units of productionUnits of ending goods in process | EUP | EUP | EUP |
| Cost per EUP | $ per EUP | $ per EUP | $ per EUP |
| Cost assignment and reconciliation | ||
| Costs transferred out | ||
| (Click to select)Indirect laborDirect materialsIndirect materialsFactory overheadDirect labor | $ | |
| (Click to select)Factory overheadIndirect materialsIndirect laborDirect materialsDirect labor | ||
| (Click to select)Direct materialsDirect laborIndirect laborIndirect materialsFactory overhead | ||
| $ | ||
| Costs of ending goods in process | ||
| (Click to select)Indirect laborFactory overheadIndirect materialsDirect laborDirect materials | $ | |
| (Click to select)Direct laborIndirect materialsFactory overheadDirect materialsIndirect labor | ||
| (Click to select)Direct materialsIndirect materialsDirect laborFactory overheadIndirect labor | ||
| Total costs to account for | $ | |
In: Accounting